May 16 (Bloomberg) -- BHP Billiton Ltd., the world's largest mining company, surged to a record in Sydney trading after the Australian newspaper reported China want to team up with an Australian fund to purchase a 9 percent stake.

BHP rose as much as A$2.02, or 4.2 percent, to A$50.00 on the Australian stock exchange and traded at A$49.53 at 1:03 p.m. Sydney time. The possible stake would be worth about $22.5 billion.

China's biggest commodity companies have said they don't support BHP's proposed $189 billion takeover of Rio Tinto Group, prompting Aluminum Corp. of China in February to buy a stake in London-based Rio. Unidentified Chinese state-backed companies approached a ``major'' Australian pension and investment fund about taking the stake in BHP, the Australian newspaper reported.

``They have got significant funds they can direct to global investment opportunities that are to the benefit of Chinese interests,'' Jamie Spiteri, a trader at Shaw Stockbroking Ltd. in Sydney, said today.

BHP Chief Executive Officer Marius Kloppers said this month he had ``no doubt'' that Chinese investors would buy shares in his company. China Investment Corp., the nation's $200 billion wealth fund, said last week global financial market turmoil presents ``unprecedented'' investment opportunities.

`Take Half'

The Chinese interests would take half the stake, and the remainder would be split between the fund and a private-equity investor to help allay concerns China is taking over Australian resource companies, the newspaper said.

China, the biggest buyer of metals, has been hurt by a threefold gain in commodity prices since 2002, prompting producers to make overseas acquisitions.

There was talk Aluminum Corp., known as Chinalco, may be preparing to buy BHP shares, Leigh Gardner, head of sales trading at ABN Amro Holding NV in Melbourne, said May 14 after BHP shares rose 6.1 percent.

Chinese authorities are yet to determine which state-owned institution or steel mill may take a lead role in buying a stake in BHP, the Australian reported last month. Boasteel Group Corp., China's biggest steel mill, and China Investment Corp. declined to comment on the report at the time.

The sovereign fund had its foreign investment limit raised by more than 30 percent to $90 billion, the Financial Times reported last month, citing the fund's president and chief investment officer.